The financing supports two wind farms with a combined capacity of 500 MW in Ras Ghareb, adding to Egypt’s expanding renewable-energy pipeline as developers increase investment in wind, solar and battery storage.
Alcazar Energy Partners has reached financial close on two wind farms with a combined capacity of 500 megawatts (MW) in Ras Ghareb, Red Sea Governorate, securing $436 million in debt financing from European development finance institutions.
The Niat and Rasgha projects, each with a capacity of 250 MW, have a combined investment cost of $626 million. The financing was provided in equal shares by the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and Germany’s DEG, with guarantees from the European Union, according to Alcazar Energy Partners.
Both projects have secured 25-year power purchase agreements (PPAs) with the Egyptian Electricity Transmission Company (EETC). Siemens Gamesa will supply and maintain the turbines, while Orascom Construction will undertake balance-of-plant works.
Scheduled to begin operations by the end of 2028, the wind farms are expected to generate more than 2.3 terawatt-hours of electricity annually and avoid approximately 1.1 million tonnes of carbon dioxide-equivalent emissions.
The financing forms part of Alcazar’s broader investment activity in Egypt, which also includes a separate $420 million agreement signed in July to acquire the 580 MW Gabal El Zeit wind complex. Unlike Niat and Rasgha, the transaction involves the acquisition of an existing operating asset rather than the development of new generation capacity. The International Finance Corporation (IFC) is considering providing up to $120 million in debt financing for the acquisition, subject to approval.
Egypt expands renewable pipeline
Egypt is accelerating renewable-energy development as it targets a 45% share of electricity generation from renewables by 2028.
Projects under implementation with the private sector include 11,569 MW of wind capacity, 7,620 MW of solar capacity and 13,220 megawatt-hours of battery storage, according to EETC.
Several major wind agreements have also advanced in 2026. ENGIE signed a PPA for a 900 MW wind farm in Ras Shokeir, while Infinity Power and Hassan Allam Utilities signed an agreement for a separate 1 GW wind project.
Solar generation and battery storage are also attracting significant investment.
In October, Scatec signed financing agreements and began construction on the first phase of its Dandara project for Egypt Aluminium. The phase combines 569 MW of solar capacity with 100 megawatt-hours (MWh) of battery storage, with estimated capital expenditure of $271 million and $217 million in debt financing from the EBRD, African Development Bank and EIB.
The phase is expected to generate approximately 1.4 terawatt-hours annually, with commercial operations targeted for the first half of 2028.
Also in October, Infinity Power and Hassan Allam Utilities secured up to $566 million in debt financing for the Nefer Minya project, which combines 1.2 gigawatts-peak (GWp) of solar capacity with 600 MWh of battery storage. The EBRD is arranging up to $265 million, alongside DEG, FMO and Proparco, according to the developers.
Renewable investments build on 2025 deals
The 2026 commitments build on a series of major renewable-energy investments announced and financed in 2025.
In February 2025, ACWA Power signed a 25-year PPA for a 2 GW wind project in South Hurghada, valued at approximately $2.29 billion.
In June, Scatec reached financial close on its 1.1 GW Obelisk solar project, which includes 200 MWh of battery storage. The project has estimated capital expenditure of $590 million, supported by $479.1 million in project financing.
In December, the IFC announced a $571.8 million debt package for AMEA Power’s 1 GW Abydos II solar plant and 600 MWh battery storage system.
Operating data also indicate progress in expanding renewable generation. The New and Renewable Energy Authority (NREA) reported that the first 500 MW phase of Obelisk increased Egypt’s installed renewable capacity from 8.6 GW to 9.1 GW in the second quarter of FY2025/26. Renewable electricity generation reached 7,063 gigawatt-hours, up 8.5% year on year.
Ember’s monthly electricity data indicate that renewable sources accounted for approximately 14.0% of Egypt’s total electricity generation in FY2025/26, up from around 12.9% in FY2024/25. This represents an increase of approximately 1.2 percentage points, reflecting continued growth in renewable generation, although the share remains below the government’s 2028 target.
Meanwhile, the Ministry of Planning targeted EGP136.3 billion in investment across the wider electricity and renewable-energy sector in FY2025/26, compared with EGP72.6 billion targeted for FY2024/25. The figures cover the broader sector rather than renewable energy alone.
While a direct comparison of total renewable investment in 2025 and 2026 is difficult because announced figures include project costs, debt financing, acquisitions and projects at different stages of development, the pipeline points to continued investment across generation technologies and storage.
The expansion of wind and solar capacity, alongside battery storage, will be important to increasing the share of renewables in Egypt’s electricity mix and managing the variability of power generation.
